SpaceX Eyes Telecom Takeover as Elon Musk Pushes Beyond Starlink

Elon Musk’s SpaceX is setting its sights far beyond rockets and satellites, with ambitious plans to become a major player in the global telecommunications industry.

The company is accelerating efforts to expand its direct-to-device service, a technology that allows smartphones to connect directly to satellites without relying solely on traditional cell towers. However, SpaceX faces a major hurdle in the United States: it lacks access to valuable low-band wireless spectrum, which is crucial for providing reliable coverage in densely populated urban areas. Most of these frequencies are already controlled by telecom giants AT&T, Verizon, and T-Mobile.

To overcome this challenge, SpaceX is reportedly considering two major strategies. According to reports, the company could acquire rival telecom firms to gain access to their spectrum licenses or compete in government auctions next year for C-band frequencies, which are well-suited for both satellite and terrestrial mobile networks.

The report also claims that SpaceX has showcased a prototype smartphone to investors and is exploring the development of a hybrid communications network that combines Starlink’s satellite infrastructure with traditional ground-based telecom systems. Elon Musk has previously hinted that acquiring a telecommunications operator remains a possibility, although such a move would likely cost hundreds of billions of dollars.

Competition is also heating up. Amazon is preparing to challenge Starlink through its own low-Earth orbit satellite project and has reportedly filed plans to launch a constellation of more than 5,000 satellites capable of providing direct-to-device connectivity.

The growing ambitions of both SpaceX and Amazon have already rattled the telecommunications industry, with shares of major U.S. carriers reportedly falling after news of the expansion plans emerged.

While it remains uncertain whether either tech giant can break the long-standing dominance of traditional mobile operators, one thing is becoming increasingly clear: the future of mobile connectivity is shifting from cell towers to space.